According to a statement from Iran’s Presidential legal office on Monday, the appeal court confirmed the PCA’s November 2021 decision in favor of Bank Melli Iran and Bank Saderat Iran.
The banks had accused Bahrain and its central bank of seizing the Future Bank in 2005, a move they argued was politically driven.
The Future Bank, where the two Iranian banks held the majority stake, was established in Bahrain to facilitate financial transactions for Iranian businesses.
The PCA determined that Bahrain’s confiscation of the Future Bank was unlawful.
Although Bahrain contested the ruling and questioned the PCA’s jurisdiction, claiming that the confiscation aligned with international sanctions on Iran, the appeals court rejected the arguments and upheld the PCA’s compensation order.
Iran initiated legal proceedings against Bahrain after a July 2021 decision by a Bahraini court to seize assets belonging to Bank Melli, Bank Saderat, and the Central Bank of Iran held in the Future Bank.
Bahrain’s High Criminal Court alleged that the two Iranian banks were involved in money laundering activities benefiting Iran’s central bank and other entities.
However, appeals court judges noted the takeover decision was made “without thorough examination or justification” and appeared politically motivated.
